UAL lines up $3 billion in Chapter 11 exit financing

United Airlines parent UAL Corp. will exit bankruptcy via a $3 billion, six-year, all-debt financing package, the company said yesterday.
JP Morgan and Citigroup will be lead managers for the offering, which UAL said has "very competitive terms." The interest rate is LIBOR plus 450 basis points. Exit financing will be used to repay the debtor-in-possession facility, make other payments required to exit bankruptcy and insure a strong cash balance when the company leaves bankruptcy.
"We are ...